Adidas, the world’s largest sports footwear and clothing brand, will build its first Asia global capacity center (GCC) factory outside of China in Tamil Nadu, India.
The massive sports footwear and clothing company’s action supports the current trend of international corporations making significant investments in India to establish their GCCs and take use of the nation’s plentiful software capabilities.
As per reports, key processes will be the primary focus of Adidas’ initial and sole GCC in Asia, which will be located in Chennai, India.
The German firm, will establish a Global Business Services (GBS) center, with Akhil Kapoor in charge of operations. Kapoor states that he is the vice-president for GBS worldwide purchasing and the head of GBS India, which is based in Chennai.
According to the source, Adidas expects tremendous development in its Chennai facility and plans to add large value resources over the following three to five years.
The Chennai center has been recognised as the Global Hub, integrating seamlessly with Adidas’ current hubs in Porto (Portugal), Dalian (China), Bogota (Columbia), and North America to provide support to the company’s global operations.
The hub will play a critical role in important processes such as source-to-pay (S2P), financial planning and analysis (FP&A), invoice-to-cash (I2C), and record-to-report (R2R) under the direction.
Tamil Nadu Industries Minister TRB Rajaa added, “We are taking advantage of our longtime position as an information center and industrial stronghold, as this foundation has been crucial in demonstrating the capabilities of our talent pool and gaining the faith of current and potential investors. This trend is especially visible in the footwear industry, where our state currently employs a substantial number of women, and big footwear manufacturers are looking at Chennai for their GCC operations”.
According to a recent Colliers study, Chennai saw an all-time high net commercial occupancy of 10.5 million square feet in CY ’23, a stunning 131% increase over CY ’22.
Although a retail-focused GCC may begin with finance, procurement, and supply chain operations, it may gradually progress up the value chain by engaging in more work like product development, e-commerce platform development.
